Results 1 to 25 of 25

Thread: VSP cutting reimbursements by 20% starting July 1, 2016.

  1. #1
    OptiBoard Novice
    Join Date
    Oct 2010
    Location
    Chicago Area
    Occupation
    Frame Manufacturer
    Posts
    1

    VSP cutting reimbursements by 20% starting July 1, 2016.

    I am not sure if this has been covered much in this forum, but it seems worthy of discussion. Seems VSP is now going to require you buy $6000 in Marchon product per year or they are cutting your reimbursement on frames by 20%. Here is the paragraph:

    You’ll be reimbursed based on the wholesale equivalent of the patient’s retail allowancefor Marchon and Altair frames. Effective July 1, 2016, for all other frames, you’ll bereimbursed at 80% of the patient’s wholesale equivalent frame allowance. If your netpurchases of Marchon and Altair frames are equal to or more than $6,000 LTM, you willbe reimbursed at 100% of the patient’s wholesale equivalent frame allowance for allframes.


    The links below show a letter of objection by the AADO and the responses. So if you accept VSP, get ready to see your reimbursements cut unless you abide by their imposed rules regarding purchases of Marchon product. And, if you think the AADO position is right, you can thank VSP for possibly involving you in a criminal kick back scheme.

    https://www.theaado.org/files/VSP-Frames.pdf

    https://www.theaado.org/files/VSP-reply.pdf

    http://theaado.org/files/VSP-Frames-2.pdf


    At the same time VSP launches a website to sell frames direct to patients. http://www.eyeconic.com/

    Any ideas on how to let VSP know we all do not agree with their play, and push back?
    Bruce Malter
    Continental Optical Imports

  2. #2
    OptiBoard Moron newguyaroundhere's Avatar
    Join Date
    Nov 2014
    Location
    Pittsburgh
    Occupation
    Dispensing Optician
    Posts
    456
    http://www.optiboard.com/forums/show...?highlight=vSP

    http://www.optiboard.com/forums/show...?highlight=VSP


    The state of California is apparently looking into the matter.

    And if offices are truly upset by it and want to get VSP's attention, then everyone that is upset with this change should drop them immediately. Companies only respond when their bottom line is impacted & a big enough pushback from independent opticians and optometrists could make it happen.

    However, most people are comfortably miserable with the positions they are in & likely would not want to change a thing.
    Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity

  3. #3
    OptiBoard Apprentice Lori's Avatar
    Join Date
    Apr 2016
    Location
    Orange County California
    Occupation
    Dispensing Optician
    Posts
    38
    Wherever there's opportunity, the Mafia will be there. quote: John Kelly

    VSP- Vision Super Power

  4. #4
    ods
    Join Date
    Nov 2007
    Location
    randolph
    Occupation
    Optical Retail
    Posts
    70
    I sat through VSP presentation with the area Vp. It is complete non sense. When you look at VSP of a non Marchon frame we still make out better because of discount. They believe that Vendors only give a max 12%. They feel that by having more Marchon product and giving your patients higher value frames(?) more patients will come to your doors. Just what I need. Work the numbers folks.

    Additionally, you will get more attention from Econic online.

    We are not moving forward with this.

  5. #5
    Compulsive Truthteller OptiBoard Gold Supporter Uncle Fester's Avatar
    Join Date
    Dec 2004
    Location
    At a position without dimension...
    Occupation
    Dispensing Optician
    Posts
    4,053
    Is the $6000 based on last years sales? So if you're at $5900 June 30 you're screwed???

  6. #6
    Rising Star
    Join Date
    Apr 2016
    Location
    Ohio
    Occupation
    Dispensing Optician
    Posts
    64
    Finding companies who give a 20 % discount will be key ... I would think with this mandate more and more independent lines will be competitive so offices are not swayed to flood there boards with the collections we shall not name lol
    Last edited by Cat-Eyes; 05-26-2016 at 11:37 AM.
    "One should either be a work of art or wear a work of art" - Oscar Wilde

  7. #7
    Compulsive Truthteller OptiBoard Gold Supporter Uncle Fester's Avatar
    Join Date
    Dec 2004
    Location
    At a position without dimension...
    Occupation
    Dispensing Optician
    Posts
    4,053
    Quote Originally Posted by Cat-Eyes View Post
    Finding companies who give greater than a 20 % discount will be key ... I would think with this mandate more and more independent lines will be competitive so offices are not swayed to flood there boards with the collections we shall not name lol
    Your contract does not allow more than a 20% wholesale discount.

  8. #8
    Rising Star
    Join Date
    Apr 2016
    Location
    Ohio
    Occupation
    Dispensing Optician
    Posts
    64
    Quote Originally Posted by Uncle Fester View Post
    Your contract does not allow more than a 20% wholesale discount.
    edited
    "One should either be a work of art or wear a work of art" - Oscar Wilde

  9. #9
    Compulsive Truthteller OptiBoard Gold Supporter Uncle Fester's Avatar
    Join Date
    Dec 2004
    Location
    At a position without dimension...
    Occupation
    Dispensing Optician
    Posts
    4,053
    Quote Originally Posted by ods View Post
    I sat through VSP presentation with the area Vp. It is complete non sense. When you look at VSP of a non Marchon frame we still make out better because of discount. They believe that Vendors only give a max 12%. They feel that by having more Marchon product and giving your patients higher value frames(?) more patients will come to your doors. Just what I need. Work the numbers folks.

    Additionally, you will get more attention from Econic online.

    We are not moving forward with this.
    I can't help but think VSP has an algorithm that like all algorithms cares only about Marchon's and VSP's bottom line.

    This is purposely going to open up the move to brick & mortar retailing for them. For years now we've been giving them all the data they need to move into just the right places.

  10. #10
    Master OptiBoarder
    Join Date
    Feb 2008
    Location
    Jacksonville, Florida
    Occupation
    Optical Laboratory Technician
    Posts
    992
    Pearle Vision is a preferred VSP provider, been quite a big restructuring within the brand (Pearle) in the last 18 months. Been a big push to get all Pearles credentialed with VSP.
    Clinton Tower

    The intellect to live free is in short supply
    ALT248=°

  11. #11
    Compulsive Truthteller OptiBoard Gold Supporter Uncle Fester's Avatar
    Join Date
    Dec 2004
    Location
    At a position without dimension...
    Occupation
    Dispensing Optician
    Posts
    4,053
    Quote Originally Posted by scriptfiller View Post
    Pearle Vision is a preferred VSP provider, been quite a big restructuring within the brand (Pearle) in the last 18 months. Been a big push to get all Pearles credentialed with VSP.
    Hmmm...Maybe make them an offer they can't refuse???

  12. #12
    OptiBoard Moron newguyaroundhere's Avatar
    Join Date
    Nov 2014
    Location
    Pittsburgh
    Occupation
    Dispensing Optician
    Posts
    456
    So would VSP actually attempt to acquire Pearle directly from Luxottica, giving them that national brand presence that they have wanted and does Luxottica actually listen to any offers for Pearle? We can assume Sears will be eventually jettisoned off as the Sears brand itself is dying, but would they actually sell off Pearle?
    Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity

  13. #13
    What's up? drk's Avatar
    Join Date
    Mar 2004
    Location
    Ohio
    Occupation
    Optometrist
    Posts
    6,994
    Quote Originally Posted by Uncle Fester View Post
    Your contract does not allow more than a 20% wholesale discount.
    Aye, there's the rub, matey.

    Fester, you analysis is impeccable.

    Can you believe that crap?

    In a slightly circuitous manner, the contract is simply saying "you agree to buy frames from VSP".

    But let's get serious...think about how Davis or Spectera operate. Which one has that "tower"? Only certain frames covered.

    VSP is slowly restricting itself to being vertical stores, and they like it that way. They want to steer their bought-and-paid-for members to VSP friendly offices/retail outlets for extra coin.

    Be sure to use their lenses, too...
    Last edited by drk; 05-27-2016 at 09:34 AM.

  14. #14
    Compulsive Truthteller OptiBoard Gold Supporter Uncle Fester's Avatar
    Join Date
    Dec 2004
    Location
    At a position without dimension...
    Occupation
    Dispensing Optician
    Posts
    4,053
    So would VSP actually attempt to acquire Pearle directly from Luxottica, giving them that national brand presence that they have wanted and does Luxottica actually listen to any offers for Pearle? We can assume Sears will be eventually jettisoned off as the Sears brand itself is dying, but would they actually sell off Pearle?
    Everyone has their price. Maybe VSP will go los lobo but a ready made chain makes sense. Lux is still in a cash crunch-no? US anti-trust get pushed aside- the list goes on.

    Where are the girls from Eyeoverheard when you need them???

  15. #15
    What's up? drk's Avatar
    Join Date
    Mar 2004
    Location
    Ohio
    Occupation
    Optometrist
    Posts
    6,994
    I'm sure VSP and Lux would be very happy to do a deal.

    I think Pearle is a turkey. If I were Lux, I'd be happy to sell it to my competition...for a pretty penny, that is.

    VSP is unlikely to survive in this strategy, but they sure want to give it a try. Their current model is endangered greatly by Washington, D.C.

    Just what this world needs...another chain optical? How exciting for everyone.

  16. #16
    Master OptiBoarder DanLiv's Avatar
    Join Date
    Sep 2009
    Location
    Denver, CO
    Occupation
    Dispensing Optician
    Posts
    425
    Quote Originally Posted by newguyaroundhere View Post
    So would VSP actually attempt to acquire Pearle directly from Luxottica, giving them that national brand presence that they have wanted and does Luxottica actually listen to any offers for Pearle
    Off topic, but if I were Lux I wouldn't sell Pearle (or anything else) to VSP. VSP is their competitor for insurance and frames, why would they allow VSP to expand tho competition to retail? Lux should block VSP's expansion and simply outbid them on any retail purchases, and expand themselves in the process. Every VSP patient is locked in to the ecosystem and is someone definitely NOT going to any Lux outlet. They can't compete for those customers (except ahead of time by lobbying Eyemed instead of VSP to employers) so their expansion strategy coincides directly with eliminating VSP.

    Sucks for all of us either way, but it's a fight I would like to see.

  17. #17
    O.D. Almost Retired
    Join Date
    Dec 2009
    Location
    California
    Occupation
    Optometrist
    Posts
    998
    [QUOTE=DanLiv;524668]Off topic, but if I were Lux I wouldn't sell Pearle (or anything else) to VSP. VSP is their competitor for insurance and frames, why would they allow VSP to expand tho competition to retail? Lux should block VSP's expansion and simply outbid them on any retail purchases, and expand themselves in the process. Every VSP patient is locked in to the ecosystem and is someone definitely NOT going to any Lux outlet. They can't compete for those customers (except ahead of time by lobbying Eyemed instead of VSP to employers) so their expansion strategy coincides directly with eliminating VSP.]

    I'm in a unique situation I guess, but I see vsp members coming to me for exams and taking Rxs to various places, including a Lenscrafters that is a couple of hundred yards from my office. These are people who will get less and pay more for what they can get from me under their plan, but still some do it. Some of them because of brand loyalty (I don't have any Lux products), some because of loyalty to LC itself. Some because some things can be done quicker there.

  18. #18
    Eyes eastward... Uilleann's Avatar
    Join Date
    Jan 2007
    Location
    Utah
    Occupation
    Dispensing Optician
    Posts
    2,343
    Where is Race to tell us all how great a deal this is for us all, and how we should be thankful VSP's too cheap to even use lube? ;)

  19. #19
    Master OptiBoarder OptiBoard Silver Supporter
    Join Date
    Mar 2012
    Location
    Maryland
    Occupation
    Dispensing Optician
    Posts
    1,147
    I miss race. He always made me feel like I'm doing it all wrong.

  20. #20
    Master OptiBoarder OptiBoard Silver Supporter Jubilee's Avatar
    Join Date
    May 2001
    Location
    United States
    Occupation
    Other Eyecare-Related Field
    Posts
    3,172
    Coming a little late to the party... but here's my $.02

    We will not be doing anything with Marchon or Altair. I have not up to the point, and I will not start now. Everything that I have that is usually covered by VSP has that 20% disc, and everything that doesn't, the WFA is above the majority of the plans criteria. The avg loss is about $11/claim. While I could raise prices in an effort to collect that money, honestly our pricing is above industry avg on frames, and I am hoping this puts us a bit more in line.

    I *hope* everyone isn't pushing for their independent distributors to give them that 20% disc, because what it will mean is the list price will rise, in an attempt to "play the game". List was $57, now it is $68. Essentially the same game some manufacturers have now, where they have high discounts to offset overinflated frame facts prices. It also makes it increasingly likely that in a few years, inflation will have set in, and people will perceive a higher need for these damn plans because of the higher frame costs. Don't get me wrong, I like discounts.. but if my net is the same, then don't play games.

    As far as the comparison to Davis/Spectera... the difference is 1) Those companies supply the tower o' frames. 2) While you are to show those frames to patients first, they are not limited to only those frames. 3) We don't get penealized for selling them one of our frames compared to a Davis frame.

    As for Pearle, those are franchises for the most part. Now could VSP be putting together a plan to go after it.. Maybe, but you can bet it wouldn't have the Pearle name. I see this more as a calculated dance as VSP is struggling to have that national chain presence that many employers are desiring, and Lux simply wanting to see more of their frames and make the $$$.
    "Some believe in destiny, and some believe in fate. But I believe that happiness is something we create."-Something More by Sugarland

  21. #21
    Manuf. Lens Surface Treatments OptiBoard Gold Supporter
    Join Date
    Aug 2002
    Location
    Dorval, a suburb of Montreal in a park like environment on Lake St.Louis.
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    21,139

    Redhot Jumper ...........they are all more and more, banking on the future of internet sales.

    Quote Originally Posted by Bruce Malter View Post

    At the same time VSP launches a website to sell frames direct to patients. http://www.eyeconic.com/

    Any ideas on how to let VSP know we all do not agree with their play, and push back?


    Bruce...........nice and informative post.

    However they already know, that all of you do not agree with their new system.

    Why should they not, they are feeling the pinch already with the entrance of Lux and Essilor into the direct manufacturer, to end consumer internet sites.

    All of them know about the power of internet sales and instant communication, now even at no cost on a worldwide basis.

    I just talked to my oldest daughter this afternoon, who was in a suburban train in Bern, Switzerland going home, by calling a local Canadian number and it got transferred by a simple "Magic Jack" purchased here at a local WalMart. The transatlantic connection did not take longer than a local call.

    All these large corporations have the funds to invest into research of technology versus human age, and can forecast the near to far away future of purchasing habits of an aging society.

    It seems that they are all more and more, banking on the future of internet sales.
    Chris Ryser
    ________________________________________
    DLO. NA.IC.I.T.PO

    http://optochemicals.com............................. http://arcoatings.com

  22. #22
    Master OptiBoarder OptiBoard Silver Supporter Barry Santini's Avatar
    Join Date
    May 2000
    Location
    Seaford, NY USA
    Occupation
    Dispensing Optician
    Posts
    5,680
    Quote Originally Posted by Uilleann View Post
    Where is Race to tell us all how great a deal this is for us all, and how we should be thankful VSP's too cheap to even use lube? ;)

  23. #23
    OptiBoard Novice
    Join Date
    Jun 2016
    Location
    Elizabeth City NC
    Occupation
    Optical Retail
    Posts
    1
    My strategy is to put pressure on Marchon. When the rep comes in we are not going to replace any frames sold until VSP stops this nonsense. I only have 3 stores so I hope lots of others join me in this approach.

  24. #24
    Manuf. Lens Surface Treatments OptiBoard Gold Supporter
    Join Date
    Aug 2002
    Location
    Dorval, a suburb of Montreal in a park like environment on Lake St.Louis.
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    21,139

    Redhot Jumper Reps in the frame business work mostly on a commission basis.....................

    Quote Originally Posted by KennethB View Post

    My strategy is to put pressure on Marchon. When the rep comes in we are not going to replace any frames sold until VSP stops this nonsense. I only have 3 stores so I hope lots of others join me in this approach.

    Reps in the frame business work mostly on a commission basis.

    You can put some fear into them if you pay for his/her living cost to a large part.To boykott a business

    If you would say the frame stock consists of 90% of their frames, but not replace any frames sold means probably nothing to them. Their company will just lower the price and you will buy again. Pressure tactics would only work in big numbers and you will not get them on OptiBoard as it is an incognito hiding place to express your opinion on anything that is permitted by the owners.

    To boycott a business takes huge efforts and help, and to get that is not so easy.

    VSP now has an official retail online website and they can afford it. The only ones that can stop them is by buying them up and continue them their own way.
    Chris Ryser
    ________________________________________
    DLO. NA.IC.I.T.PO

    http://optochemicals.com............................. http://arcoatings.com

  25. #25
    OptiBoard Moron newguyaroundhere's Avatar
    Join Date
    Nov 2014
    Location
    Pittsburgh
    Occupation
    Dispensing Optician
    Posts
    456
    VSP is apparently suspending that whole cutting reimbursement idea of theirs. I guess pressure from the government was a bit much to handle
    Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. VSP to cut all frame reimbursements 20% unless you sell $6k a year in Marchon/Altair
    By sharpstick777 in forum General Optics and Eyecare Discussion Forum
    Replies: 4
    Last Post: 04-01-2016, 02:59 PM
  2. 2016 Super Bowl Commercials
    By Robert Martellaro in forum Just Conversation
    Replies: 6
    Last Post: 02-11-2016, 11:13 AM
  3. 2016 is here!!! Check out our lane packages!!!!
    By eyedeal3 in forum Optical Marketplace
    Replies: 0
    Last Post: 01-05-2016, 12:32 PM
  4. Average Medicare reimbursements by State...
    By Uncle Fester in forum Just Conversation
    Replies: 0
    Last Post: 05-08-2013, 03:57 PM
  5. NEW VSP Price lists start July 1 2012...
    By Uncle Fester in forum General Optics and Eyecare Discussion Forum
    Replies: 16
    Last Post: 08-28-2012, 02:42 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
OptiBoard is proudly sponsored by:
Younger Optics, Carl Zeiss Vision Inc., Vision Systems, Inc., ISOTech and The Optical Group